The year 2023-24 marked a significant milestone for our Company, as the number of shareholders grew from just two to several lakhs. The recent IPO of 7.5 crore shares was a resounding success, being oversubscribed about 30 times. This remarkable achievement reflects the strong vote of confidence in our Company and is a humbling experience for us all. I extend my heartfelt gratitude to our investors for placing their faith in us. As we look ahead, we are committed to driving transformational growth and serving our customers and stakeholders with unwavering dedication.

India's economy has demonstrated remarkable resilience amid global uncertainties, maintaining robust performance driven by strong government investments in manufacturing, infrastructure, supply chain, logistics, and other sectors. The structural policy framework sets the stage for sustainable, long-term growth, while the Central Bank’s proactive approach to addressing global shocks and inflationary pressures continues to support the nation’s economic progress.

The telecom industry stands as the backbone of India’s digital economy and a key catalyst for overall growth. This sector plays a pivotal role in expanding connectivity and offering value-added services that empower businesses to thrive. FY 2023-24 was a notable year for the telecom industry, marked by a rapid 5G rollout across the country. 5G technology is set to create new capabilities and unlock business opportunities across various sectors, including education, healthcare, transportation, gaming, and financial services. In areas with low fixed-line penetration, 5G can foster growth by meeting high data demand through fixed wireless access (FWA) offerings. The Government’s supportive stance towards the sector, including the introduction of the new Telecommunications Act, will further promote investment and orderly growth.

The telecom circles of Rajasthan and the Northeast, where our Company operates, present long-term growth opportunities. Although these regions are not densely populated, their potential for expanding digital services contributes significantly to the national economy. Both mobile and fixed-line data penetration in these areas is below the national average, highlighting substantial growth potential for the telecom industry. The Government’s emphasis on enhancing connectivity and infrastructure in these regions opens doors to promising opportunities.

Over the years, Bharti Hexacom has made significant investments in these regions to enhance connectivity and support economic growth. In FY 2023-24, we invested about ₹20 billion in the business—one of the highest investments in the Company’s history—facilitating the rapid deployment of 5G services and extending our coverage in rural areas. The Company added 2.5 million 4G/5G customers, with data customers now representing 72.3% of the total base, compared to 55.6% three years ago. Over the last three years, we have expanded home broadband offerings from 23 cities in FY 2020-21 to 93 cities through innovative partnerships with local cable operators. Our simple strategy of attracting quality customers by providing exceptional experiences has solidified our leadership in the Northeast and consistently narrowed the gap in Rajasthan, culminating in lifetime-high revenue market share in both markets by the end of FY 2023-24.

Superior revenue growth, combined with organic operating leverage and a focus on cost efficiencies, has driven strong EBITDA growth over the years. Our ability to generate operating free cash and prudent capital allocation have supported sustained deleveraging. Net debt to EBITDA for FY 2023-24 stood at 2.2x, compared to 2.8x in FY 2022-23. With no spectrum renewal obligations until FY 2029-30 and limited dues from recent spectrum auction installments, the Company is on track to strengthen its balance sheet further.

Looking ahead, we remain committed to our clear and simple strategy of offering a range of high-quality telecom services and delivering the best consumer experience under the Airtel brand to our growing customer base. This vision is made possible by our excellent leadership and management team, composed of dedicated professionals with technical expertise. We are excited about the opportunities that lie ahead and, with the Indian telecom sector entering a phase of increased profitability, we are optimistic about our Company’s potential for many years of achievement, growth, and success.

Bharti Hexacom remains deeply conscious of its responsibility to the environment and society at large. Beyond our immediate business priorities, we are taking concrete steps to reduce our environmental footprint and are committed to energy conservation and technology absorption initiatives. Additionally, we uphold our commitment to transparency, effective governance, fostering a diverse and inclusive workplace, and maintaining high health and safety standards.

We owe our success in FY 2023-24 to the efforts of our Board of Directors, management team, and employees. I would also like to thank our customers, suppliers, agents, partners, and shareholders for their support and contributions. I extend my gratitude to the outgoing directors—Shri Sanjeev Kumar, Shri Surajit Mandol, Mr. Rahul Vatts, Mr. Ravinder Arora, and Ms. Vidyut Gulati—for their service to the Company. We warmly welcome our new Independent Directors, Mr. Ashok Tyagi, Mr. Arvind Kohli, Mr. Arun Gupta, Mr. Kapal Kumar Vohra, and Ms. Nalina Suresh, to the Board.

Jagdish Saksena Deepak

Chairman